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Supply-Chain Operations Reference

(SCOR)

By: Matt, Scott, Anas

Discussion

Operating Strategy

History and Background

What is SCOR

Model

Benefits

Supply Chain Management for a Better World

SCOR

Operational Strategy

Mission Statement

Overall Company Strategy

Company Operational Strategy

SCOR

Developed by the supply chain council

(www.supply-chain.org)

Described as “most promising model for supply chain

strategic decision making (2)

Model integrates business concepts of process, re-

engineering, benchmarking, and measurement into its

framework (2)

(2) Huan, Samuel. Sheoran, Sunil. Wang, Ge. A research and analysis of supply chain operations reference (SCOR) model.

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SCOR History and Background

SCOR: Management tool used to address, improve, and

communicate supply chain management decisions within

a company and with suppliers and customers of a

company (1)

Explains the process along the entire supply chain and

provides a basis for how to improve those processes

http://scm.ncsu.edu/public/facts/facs041027.html, (1) SCOR Model, Supply Chain Council, October 7, 2004.

What is SCOR

SCOR is a supply chain process reference

model

Contains over:

200 process element

550 metrics

500 best practices

Organized around 5 processes

Supply Chain Reference Model

Describes the business process required to satisfy a

customer’s demands.

SCOR Reference Model

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Process spans from “the supplier’s supplier to the

customer’s customer

Framework

Focuses on 5 areas of the supply chain

Plan

Source

Make

Deliver

Return

Repeat again and again in the supply chain

(3) Supply Chain Management: An International Journal, Vol. 9, Num. 1, 2004.

Supply Chain Reference Model

SCOR Overview Plan

Demand and supply planning

Include Balancing Resources

Determine business rules

Rules span inventory, transportation, assets and

regulatory compliance

Supply chain plan aligns with financial plan of the

company

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Source

Describes sourcing infrastructure and materials

acquisition

Describes how to

Manage inventory

Supplier Network

Supplier Agreements

Supplier Performance

Describes handling payments and when to receive,

verify and transfer product

Make

Manufacturing and Production

Make to order

Make to stock

Engineer to order

Includes

Production activities

Packaging

Staging product

Releasing product

Includes managing the production network,

equipment/facilities, and transportation

Deliver

Includes

Order management

Warehousing

Transportation

Receiving orders from customers and invoicing them

Steps involve

Management of finished inventories

Assets

Transportation

Production life cycles

Importing and exporting requirement

Return

Be prepared

Return of containers

Packaging

Defective Products

Involves the management of

Business rules

Return inventory

Assets

Transportation

Regulatory Requirements

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The US Department of Defense

• The SCOR helps the war fighter at the tactical level.

• Managing the supply chain in the DOD comes from

knowing the customer demand (war fighter).

• Manage the supply chain from end to end.

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The US Department of DefenseLevel 1 :

• SCOR looks at the entire of supply chain for best

meeting the requirements of the war fighters.

for example : the days of inventory.

• Integrate with 500 keys.

• The model examine the process performance.

The US Department of Defense

• The DOD put the metrics under the five management

process.

Plan Source Make Deliver Return

(length) (Quality) (Finishing) (Warehousing) (Repair)

The US Department of Defense

• Reduce inventory, improve the accuracy of forecasting.

• It define Five performance attribute:

Reliability . Cost.

Responsiveness . Asset.

Flexibility .

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The US Department of DefenseLevel 2:

• The Model analyze the material flow from end to end

based on the organization strategy.

• What type of product depends on what season.

The US Department of DefenseLevel 3:

• Drill deeper in the organization information flow.

• Validate the impact of improvement

As is To be

Level 4:

• Implementation level

Outside the scope of SCOR.

The US Department of Defense

Results of using the SCOR model in the DOD:

• The model is used for the organization to learn from the

other.

• It gives a road map between the present performance

and the future performance.

• Reduce the time for the war fighter demand satisfaction.

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Benefits of Using SCOR ModelHelps the company analyze its supply chain

Gives ideas on how advanced a company’s supply chain

really is

Allows understanding on how the 5 steps repeat over

and over again between suppliers, company, and the

customers

Each step in the supply chain is a link

Chains are only successful if links stay together

SCOR model used to identify supply chain problems

Enables companies to leverage their investment, create

a supply chain road map and alignment of business

functions for a better return on investment

See: www.supply-chain.org for more information

Any Questions